3 Things You Need to Know about Chapter 13 Bankruptcy

Over 1.5 million people filed for bankruptcy in 2010, the largest amount ever in the United States. When individuals need to file for bankruptcy, they typically choose to file for Chapter 7 or Chapter 13 bankruptcy. While Chapter 7 lets a debtor discharge his or her debts by liquidating assets, Chapter 13 bankruptcy gives debtors the chance to negotiate a repayment plan with their creditors so they can slowly repay their debt. By choosing this chapter, debtors can avoid having to lose any personal property.

If you or someone you know is facing an insurmountable amount of debt, you may want to consider filing for bankruptcy. Contact a knowledgeable Arizona bankruptcy attorney of the Harmon Law Office, LLC, today at 480-829-0494 and schedule a free consultation to discuss your legal options regarding Arizona bankruptcy.

What to Consider for Chapter 13 Bankruptcy

Before filing, you need to make sure you consult with a qualified bankruptcy attorney so you understand your rights as well as how Chapter 13 bankruptcy works. Be sure to consider the following when filing for bankruptcy:

• There are a few requirements for Chapter 13 bankruptcy. You have to earn enough money to partially pay off your debts as well as support your family. This means all unsecured debts cannot exceed $360,475, and secured debts cannot be over $1,081,400.
• If you file for Chapter 13 bankruptcy, you can stop any foreclosure process on your home. The foreclosure process cannot be finalized unless it was complete before you filed for bankruptcy.
• Your credit report will reflect that you filed for bankruptcy for 7 years.

Choosing to file for bankruptcy can be a difficult decision, but it can be the best way for you to get your debts under control and reach financial stability.

Contact Us

There are many things to consider when looking at bankruptcy, and it is imperative to have your questions answered by a knowledgeable Arizona bankruptcy advisor. To get the legal advice you need, contact the Arizona bankruptcy lawyers of the Harmon Law Office, LLC, today at 480-829-0494.